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Outsourcing Short Sale Negotiations: It Might Pay Off

Short Sale

If you are a homeowner trying to sell a home with little or no equity, a real estate agent or an investor, outsourcing your short sale negotiations to a reputable third party can pay off in many ways!

Short sale processing companies provide a wide range of services to the real estate community, all designed to support the efforts of brokers and agents who wish to help homeowners overburdened by mortgage debt. By providing education, coaching, and short sale processing services, these companies can help agents and homeowners to address changing market conditions and avoid foreclosure.

There's no question that short sales can be accomplished by all. However, it may pay to take advantage of these processing houses because they have the contacts and the experience to get the job done quickly and efficiently--simply because of their sheer volume.

Problem with the BPO? They've seen that before. First and second lien holders cannot agree? They've dealt with that before. Promissory notes? They've dealt with that before, too.

Short Sale Expeditor is a California-based short sale processing house that can help you (both agents and borrowers) to get the job done quickly and efficiently. Like I said, outsourcing may not be for everyone. But, if you leverage your time by getting more short sale listings while a third party does the dirty work, it may be a win-win-win!

Melissa R Zavala
Broker, Realtor®

Save time . . . outsource annoying administrative tasks.
All the commission checks you could ever want are just a click away.

Broker, Realtor®
DRE #01324959
Broadpoint Properties, Inc
San Diego County Short Sale Specialists
Short Sale Expeditor®

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Posted by Melissa Zavala Realtor® North San Diego County Homes on 04/22/2009 06:37 PM

Comments (26)

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escondido real estate, escondido, california

Originally posted at: : Outsourcing Short Sale Negotiations: It Might Pay Off

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26 Comments on Outsourcing Short Sale Negotiations: It Might Pay Off

APR

Hi Melissa, I have been outsourcing for over a year in Akron, Ohio. I was spending way too much time talking to banks or waiting for an answer. They have a great system, I get my full commission and my clients get some much needed relief! And I find new listings with my spare time. Great points.

Hi Melissa, I agree, they have a lot of the contacts in place and experience to complete the task!

APR

I like the concept. This may be a good solution if they have experience with some of the more difficult banks.

I couldn't agre more. We insist a seller use a short sale processor. In our case its an attorney so the seller is comfortable with the process and we have soemone standing behind us to avoid any liability. And, most importantly, it frees up our time to prospect. A true win-win for everyone.

I find that outsourcing is the best way to go since there are many legal pitfalls you can run into. Research who the outsourcer is to ensure they are not fly-by-night operations. An attorney-run outsourcer is a great way to go but you should always check references to make sure the company is legit. Ans also make sure you keep on top of what the outsourcer is doing so that you know they are indeed working on your client's file.

Hi Melissa! I am a big fan of CYA (& therefore outsourcing)!

Having someone to outsource to who you believe in, trust in, and you know will take care of your clients the way YOU would want to be taken care of makes all the difference in the world.

You are able to help your clients who are upside down without spending 72 hours on hold trying to get ahold of someone at Countrywide before they transfer you & drop your call. (Not that I would know anything about that!)

Great idea!

Thank you for your post!

We have a team that does our short sales....till now I had not heard the praises sung of any 3rd party negotiators....we like being able to answer a status question for buyer, seller, attorney in a flash....if that is the kind of service they provide...it may bear looking into what they provide.

Melissa (and friends),

I have not used a processing company for short sales. I did follow the link you provided; there is one page that pitches to agents; it makes it seem they work for the listing agent. Another page is geared to the homeowner - and says the services cost the homeowner nothing.

Who exactly would this entity represent? To whom it answers in part must stem from who will pay for such services. Seller, buyer, bank or your commission? David said he gets his full commission when outsourcing. Does the outsourced firm or attorney get paid whether or not a deal closes?

I fully understand the comments about having more time for prospecting. Just wonder what the $ trade off is...

Thanks,

Irene

Depends on who the company is, and you only know that by asking for their stat's on how many they closed

I tried and got in the early stages with two. A disaster. I got one with double liens closed myself.

So like in anything if you get the right person it will be emmensioulsy helpful but not the right person...a disaster.

I have an appointment today to check out one of this companies. If nothing else, I want it to be local, in case I have to get involved.

Agents need to be very selective if they use third parties to negotiate for their clients. Front end fees should be avoided.

Thanks for the post. I am curious to know what this company charges to help with this. Also, does it come out of my commission???

Irene & Kelsey: Short Sale Expeditor is really a company that does the administrative processing while the listing and buyer's agents still work through the other components of the transaction. They take a fee off the top of the commission (usually 1% of the purchase price) and the other 5% (the rest of the commission) is split 50/50 between the agents.

hmmmm, very interesting. Wold be a gold mine if it works.

Just realized that Short Sale Expeditor is you, so I yanked initial comments.

Thanks for givining us food for thought, Melissa.

Irene

Another good company for this is Mortgage Resolution Services They also do a good job of giving agents advice on how to keep their commissions.

Realtors who take short sales with no expertise are a dangerous trend in our industry. If a homeowner is facing the difference between 7 years on their credit versus 2, and a lesser hit on their score, a thrid party taking care of the sale is a classic example that a % of something is better than 100% of nothing. Most importantly and ethically, the client is the biggest winner as they should be.

I've used a company to negotiate and do admin tasks. I do agree with Missy you need to make sure you know who your dealing with and that they have a good track record.

Melissa, Thanks for this post. I am struggling through my first (and last) short sale. I have never worked so hard for a closing in my life and still don't know if it will ever happen. The worst part is feeling impotent and stupid. I don't mind learning new skills, but this is not fun and life is short. I will be looking into this concept and unless I can use some service such as this, somebody else can have the short sales.

Hi Melissa -- Sounds like a very solid service offering. My best to you.

I actually do this already. Because I dont like being on hold or tranfered so much and I dont want to not help past customers or referrals that I am able to.

APR

We use a 3rd Party service for our short sales. I'm very glad, too. But, one thing that I do NOT like is when Buyer's Agents don't trust the 3rd party service, nor their timeline for follow-ups, and expect me to have an update each and every time they call for one. Our 3rd party service does good work, and we are mostly pleased with the results, but the hard part is communicating this to the Buyer's Agents.

APR

Eric,

A good third party service should be able to help set expectations on both sides of the deal.

Setting the Buyers and Buyer's Agent's expectations are crucial to getting these deals done.

MAY

I'm all for outsourcing when possible. Anything that frees-up my time and streamlines the process is a big plus!

JUN

I've used Matt Martin Real Estate Management (short sale specialists) and am very happy with the process. They did all the work for me and and were execptionally easy to deal with. I have since sent several more opportunities their way and have benefited because I now have more time with my clients and less time on the phone with lenders and document collection.

JUN

Whatever company you choose, the benefit of outsourcing is that you have more time to do what you do best--list and sell property. Recently, I heard someone say, "I would give away 1000 dollars every day of the week, if someone was going to be paying me 5k." Translation: It's definitely worth the money!

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